Valvoline Inc., a leading supplier of premium-branded lubricants, has announced that it closed a new U.S. accounts receivable facility on Nov. 29.
The new facility makes available up to $125 million. Certain of the company’s lenders under its senior credit facility have committed to be purchasers under its new U.S. accounts receivable facility. The facility was established with various financial institutions.
Valvoline has borrowed $75 million under the facility to date and has applied the net proceeds to reduce borrowings under the Term Loan A (TLA) by the same amount.
On Sept. 28, Valvoline completed the initial public offering (IPO) of its common stock at a price of $22 per share, taking the first step in separating from Ashland and establishing a new shareholder base, reflecting the midcap consumer brand nature of the business. In addition to raising $759 million in equity capital at the time of the IPO, Valvoline raised $750 million of corporate debt. Ashland continues to own 83 percent of Valvoline’s outstanding common stock.
